Taiwan Semiconductor Manufacturing (NYSE:TSM) Hits New 52-Week High - Still a Buy?

Key Points

• Taiwan Semiconductor Manufacturing Company Ltd. (TSM) shares hit a new 52-week high of $307.30, closing at $302.36, with a trading volume of over 15 million shares.
• Multiple analysts have recently updated their ratings, with Barclays raising their price target to $325.00 and Wall Street Zen upgrading to a "buy" rating, creating a consensus rating of "Moderate Buy."
• The company also announced an increase in its quarterly dividend from $0.65 to $0.8348, with a dividend yield of 1.1%, which will be paid on January 8th.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) shares reached a new 52-week high during mid-day trading on Tuesday . The company traded as high as $307.30 and last traded at $302.36, with a volume of 15759718 shares. The stock had previously closed at $292.19.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on TSM shares. Barclays boosted their target price on Taiwan Semiconductor Manufacturing from $275.00 to $325.00 and gave the stock an "overweight" rating in a research report on Tuesday, September 16th. Wall Street Zen raised shares of Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research note on Sunday, August 31st. Susquehanna upped their price target on shares of Taiwan Semiconductor Manufacturing from $255.00 to $265.00 and gave the company a "positive" rating in a research report on Monday, July 14th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Taiwan Semiconductor Manufacturing in a report on Saturday, September 27th. Finally, Needham & Company LLC reissued a "buy" rating and issued a $270.00 target price on shares of Taiwan Semiconductor Manufacturing in a research note on Thursday, July 17th. Four equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $286.67.

Taiwan Semiconductor Manufacturing Stock Up 3.5%

The company has a 50 day moving average price of $251.53 and a 200-day moving average price of $214.43. The stock has a market capitalization of $1.57 trillion, a PE ratio of 34.48, a PEG ratio of 1.39 and a beta of 1.28. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.37 and a quick ratio of 2.15.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its quarterly earnings data on Thursday, July 17th. The semiconductor company reported $2.47 EPS for the quarter, topping the consensus estimate of $2.13 by $0.34. Taiwan Semiconductor Manufacturing had a net margin of 42.91% and a return on equity of 33.37%. The business had revenue of $30.07 billion during the quarter, compared to analyst estimates of $28.50 billion. During the same period in the prior year, the business earned $1.48 EPS. The company's revenue for the quarter was up 44.4% on a year-over-year basis. Taiwan Semiconductor Manufacturing has set its Q3 2025 guidance at EPS. As a group, analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 9.2 earnings per share for the current fiscal year.

Taiwan Semiconductor Manufacturing Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, January 8th. Stockholders of record on Thursday, December 11th will be paid a $0.8348 dividend. This represents a $3.34 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date is Thursday, December 11th. This is a boost from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.65. Taiwan Semiconductor Manufacturing's dividend payout ratio (DPR) is 29.99%.

Hedge Funds Weigh In On Taiwan Semiconductor Manufacturing

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. City Holding Co. increased its stake in shares of Taiwan Semiconductor Manufacturing by 238.0% during the first quarter. City Holding Co. now owns 169 shares of the semiconductor company's stock valued at $28,000 after purchasing an additional 119 shares in the last quarter. 1248 Management LLC purchased a new position in Taiwan Semiconductor Manufacturing during the first quarter valued at $28,000. Signature Resources Capital Management LLC boosted its holdings in Taiwan Semiconductor Manufacturing by 138.8% in the first quarter. Signature Resources Capital Management LLC now owns 191 shares of the semiconductor company's stock worth $32,000 after acquiring an additional 111 shares in the last quarter. Heartwood Wealth Advisors LLC purchased a new stake in shares of Taiwan Semiconductor Manufacturing in the third quarter worth $32,000. Finally, Resources Management Corp CT ADV bought a new position in shares of Taiwan Semiconductor Manufacturing during the second quarter valued at $32,000. Hedge funds and other institutional investors own 16.51% of the company's stock.

About Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides a range of wafer fabrication processes, including processes to manufacture complementary metal- oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and others.

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